Loading...
Structural equation modeling of relationship factors affecting entrepreneurial microfinance in Phuket, Thailand
Author(s)
Thampradit, Naphatrada
Fongsuwan, Wanno
Date Issued
January 1, 2014
Type
Article
Abstract
In globalized business, most entrepreneurs need to diversify sources of funding, especially given the internationalization of trade and finance. Entrepreneurs in particular are crucial to national and regional growth but they are most vulnerable to the difficulties and high costs in obtaining loans and small business funding. An exception however can be found in the Bangladesh Grameen Bank which opened its doors in 1983 to the impoverished peasants and poor using microcredit loans, of which 95% were to mostly women. With Thailand having over 99% of its businesses represented by small and medium-sized enterprises (SMEs), researchers decided to study the relationship factors that affect the credit support to these small entrepreneurs. In 2011, a Phuket Province census found that one in 7 households had an entrepreneurial business and they suffered from lack of loans. For qualitative research, the research survey consisted of 200 commercial bank executives that affect retail lending to the Phuket, Thailand's entrepreneurial island community. Factors having both a direct and an indirect influence having the highest positive factors within the organization included credit policy and strategy. Borrowers must additionally have aknowledge management system which can take place in many forms. Bank organizational and internal factors researched also included policies, plans, strategies and loan terms which is determined bycredit policy and retail lending or not. Additional factors in this determination are bank revenues, profits and brand image.
Citation
Research Journal of Business Management, 8(4), 491-507, 2014